How do Attorney Fees work in Workers’ Compensation?
The law governing the payment of attorney fees in workers’ compensation disputes has changed over time.
• For injuries occurring on or after Oct. 1, 2013, the fee is 20 percent of the first $130,000 of compensation to a cumulative maximum of $26,000 for the same injury. The compensation judge may award excess fees.
• For dates of injury between Oct. 1, 1992, and Sept. 30, 2013, the fee is 25 percent of the first $4,000 of compensation awarded to the employee and 20 percent of the next $60,000 of compensation awarded to the employee, subject to a total maximum fee of $13,000 for that injury.
The most common attorney fee is a contingent fee. This is a percentage of the compensation awarded to the employee on any disputed portion of the compensation. The contingent fee is deducted from the employee’s benefits and paid to the attorney. If the employee has his or her vocational benefits or medical benefits denied, the attorney fees are payable by the employer and insurer.